TMKS.L Regulatory News (TMKS)

5 Apr 2007 07:36

OAO TMK05 April 2007 April 5, 2007 TMK Announces Production Results for First Quarter of 2007 OAO TMK ("TMK" or "the Company"), one of the world's largest oil and gas pipeproducers and the market leader of the Russian pipe industry, today announcesits production results for the period from 1st January to 31st March 2007. In this period TMK shipped(1) 783,800 tonnes of pipes, which is almost a 12%increase on the amount shipped in the same period last year. Volumes of shipped pipe products in first quarter of 2007(thousand, tonnes) Product 2007 2006 Change, % (1st quarter) (1st quarter)Seamless pipes 533.4 475.3 +12.2% including OCTG 253.6 236.6 +7.2%Welded pipes 250.4 224.9 +11.3%Total pipes 783.8 700.3 +11.9% Q1 2007 saw shipment volumes increase across all product groups compared to thesame period last year. Overall the amount of seamless pipes shipped rose by12.2%, within which OCTG grew by 7.2%. Overall welded pipe shipments increasedby 11.3%, within which large diameter pipe shipments increased by 6.3%. Theincrease in the shipments of TMK pipe products in Q1 2007 was the result of newproduction capacity and operational efficiencies coupled with a significantincrease in the demand for pipes in the Russian market. The Russian pipe market in Q1 2007 saw significant increases in the prices ofthe main raw materials - scrap and pipe billets. These prices have risen onaverage by 30% and 13% respectively since the beginning of the year. In Q2 2007,the Company plans to increase prices across all of its products, a strategy which it expects to make up for higher costs of raw and other materials. __________________________ (1) "Shipped" here means shipped from TMK plants for subsequent sale to outsidepurchasers.__________________________ OAO TMK Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and oneof the three global market leaders. TMK GDRs and common shares are traded on theLondon Stock Exchange and Russian Trading System. In 2006 the total volume of pipes shipped reached over 3 million tonnes. TMKsupplies pipes to companies in more than 60 countries. TMK production facilities are located in Russia and Romania: • Volzhsky Pipe Plant • Seversky Pipe Plant • Taganrog Metallurgical Works • Sinarsky Pipe Plant • Orsk Engineering Plant • SC TMK-ARTROM SA • SC TMK-Resita SA For further information please contact: TMK IR Department:Natalia DokuchaevaTel: +7 495 775 7660Email: ir@tmk-group.com Gavin Anderson & Company:Dick Millard/Robert Speed/Michael TurnerTel: +44 207 554 1400Email: tmk@gavinanderson.co.uk This information is provided by RNS The company news service from the London Stock Exchange